Bitdeer Technologies Group’s stock plummeted by over 28% on Feb. 25 after the company reported disastrous fourth-quarter earnings, missing expectations by a wide margin. The Bitcoin miner revealed revenues of $69 million for Q4 2024, marking a nearly 40% decline compared to the previous year. Even worse, the company posted a staggering net loss of over $530 million, a massive jump from the $5-million loss recorded in Q4 2023.

Investors reacted swiftly, with Bitdeer’s stock dropping from over $13.10 per share to around $9.30 per share in early trading on Feb. 25.

The earnings collapse highlights the ongoing struggles for Bitcoin miners in the aftermath of the April 2024 Bitcoin halving event. The halving, which reduced mining rewards from 6.25 BTC to 3.125 BTC per block, has cut deep into mining revenues. According to Bitdeer’s Chief Strategy Officer Harris Bassett, the company’s performance was primarily impacted by the halving, an increasing global hash rate, and higher research and development costs.

In January, Bitcoin’s network hash rate hit an all-time high of over 1,000 exahashes per second (EH/s), intensifying competition among miners. To counter falling revenues, Bitdeer has pivoted towards selling its own energy-efficient mining hardware, but sales are still ramping up and failed to offset Q4 losses. Bassett emphasized that while this shift slowed Bitdeer’s hash rate growth, it provides a long-term competitive advantage as the company refocuses on developing ASIC mining chips.

The ASIC market is valued between $4 billion and $5 billion, and miners are increasingly diversifying into chipmaking and AI servicing to compensate for lost revenue. With earnings reports from major players like Marathon Digital and Core Scientific expected soon, the industry remains on edge, bracing for more financial turbulence.